Is your company considering a merger or acquisition? Has it already gone through with one? While such ventures can lift companies to new heights, they can also increase a company’s tax liability and legal exposure. That is why it is recommended that you contact a Mentor business tax accountant who can perform transaction services for your company. These services will help your company grow the right way. Read below to find out more.
What A Tax Accountant Can Do For Your Company
If you are going through a merger or acquisition, a tax accountant can help your company increase its return on investment, maximize its cash flow, and minimize the taxes that stem from your recent merger or acquisition. They do this by helping your company in four financial areas:
- Transaction planning
- Transaction structuring
- Choice of entity assistance
- Due diligence reviews
In the paragraphs below, we will explain how each of these services can help your company.
Transaction Planning
An experienced tax accountant will have planned many corporate transactions. Building on this experience, a tax accountant will be able to talk you through each step of the transaction process, with a specific focus on how each decision your company makes will affect its legal exposure and tax liability. A tax accountant can help your company get the most value out of your transaction. This makes a tax accountant an essential resource to have in the planning stages of a transaction.
Transaction Structuring
As with transaction planning, transaction structuring is all about helping your company save money (in the form of tax dollars) and minimize legal risk during a transaction. An experienced business tax consultant will be able to look at the transaction from all possible angles, in order to structure it in a way that is most beneficial to your business.
Choice Of Entity Assistance
Choice of entity is one of the most complicated aspects of any transaction. Did you know that the type of entity you choose can determine the way that your business is taxed? Choosing the right entity can result in huge financial savings (we are talking thousands of dollars) for your company. On the other hand, choosing the wrong entity can result in a huge and unnecessary financial burden for your new company. Yes, there is a lot riding on this one decision. Luckily, a business tax accountant can help you make the right choice. During an entity review, a tax consultant will be able to assess your company’s situation, and recommend the entity structure that will save your company the most money and cause the fewest legal headaches.
Due Diligence Reviews
When businesses are bought and sold, assets and employees are not the only things changing hands. Tax debts change hands as well. During a due diligence review, a tax accountant will examine a company’s state and local tax compliance, determining if any tax obligations are outstanding. This is a crucial part of any sale.